Allied Blenders and Distillers Limited (ABD) has received a two-notch upgrade in its rating from India Ratings & Research (Ind-Ra), with the agency raising the rating on the company’s bank facilities from IND A to IND AA-, while maintaining a Stable Outlook. The rating upgrade reflects ABD’s continued growth in its consolidated scale of operations in FY26, with Ind-Ra expecting the company to sustain and further expand its scale over the medium term. The agency also expects ABD’s improved profitability to continue, supported by a better sales mix driven by premiumisation and higher gross margins.
Progress in the company’s ongoing backward integration projects is expected to support EBITDA margins over the medium term, while consolidated net leverage is projected to remain comfortable despite ongoing capital expenditure. The rating action also takes into account ABD’s strong position in India’s Indian-Made Foreign Liquor (IMFL) industry, its pan-India diversification and the expanding size of the spirits market, factors expected to support sustainable growth and steady improvement over the medium to long term. Commenting on the development, ABD Managing Director Amar Sinha said the upgrade was an affirmation of the company’s evolving financial profile and progress across scale, profitability and balance-sheet strength.
In Kolkata, the rating upgrade could strengthen ABD’s positioning in West Bengal, a significant market for the spirits industry. The company’s focus on premiumisation, wider distribution and portfolio expansion may support growth opportunities in Kolkata and other urban centres, where demand for premium and higher-value alcoholic beverages continues to be an important segment of the broader IMFL market. ABD, which operates across whisky, brandy, rum, vodka and gin, has a presence in 39 international markets and a manufacturing footprint of 40 units, supported by a pan-India distribution network.